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On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $340 million. The bonds mature on September 30, 2044 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. Required: Determine the price of the bonds on September 30, 2024. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Time values are based on: n= (= Cash Flow Interest Principal Price of bonds Amount 40 8% Present Value $ 515.022.681

On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $340 million. The bonds mature on September 30, 2044 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. Required: Determine the price of the bonds on September 30, 2024. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Time values are based on: n= (= Cash Flow Interest Principal Price of bonds Amount 40 8% Present Value $ 515.022.681

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $340 million. The bonds mature on September 30, 2044 (20 years). The market rate of interest for similar bonds was 10% . Interest is paid semiannually on March 31 and September 30. Required: Determine the price of the bonds on September 30, 2024. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Time values are based on: n= Cash Flow Interest Principal Price of bonds Amount 40 8% Present Value $ 515,022,681
Transcribed Image Text:On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $340 million. The bonds mature on September 30, 2044 (20 years). The market rate of interest for similar bonds was 10% . Interest is paid semiannually on March 31 and September 30. Required: Determine the price of the bonds on September 30, 2024. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Time values are based on: n= Cash Flow Interest Principal Price of bonds Amount 40 8% Present Value $ 515,022,681
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